XO Reports Results, Assesses Strategic Alternatives

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May 09 2005 @ 15:20

XO Communications Inc., a national telecommunications provider, on Monday announced a 39 percent spike in first-quarter revenue and said it was examining strategic alternatives amid industry consolidation.

Revenue rose year over year from $260.9 million to $361.5 million, while XO reported a net loss of $42.9 million, down from a loss of $48.5 million in the quarter a year ago.

XO CEO Carl Grivner said the company achieved positive EBITDA (earnings before interest, taxes, depreciation and amortization) for the third consecutive quarter, and is seeing strong demand for its bundle of IP phone and Internet services tailored for businesses.

XO revealed retaining Jefferies & Company Inc. in March to evaluate strategic alternatives based on, among other things, the competitive environment of the telecommunications industry, the current regulatory environment and the recent and pending mergers and acquisitions in the industry.

XO has received the Jefferies report, which addressed potential operational improvements and disposition possibilities, and is considering all of its strategic alternatives, the company stated in a press release.

XO is among a group of telecommunications companies opposing pending mergers that will allow SBC Communications Inc. and Verizon Communications Inc. to get bigger while ending the sovereignty of AT&T Corp. and MCI Inc.

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